Drinks Americas Holdings Ltd. (OTCMKTS:DKAM) Makes a Nice Jump
The general direction in which Drinks Americas Holdings Ltd. (OTCMKTS:DKAM) has been moving in the past months is upward and the company is doing its best in order to keep it that way, issuing regular press releases.
The PR from the beginning of this year alone are 10 by now and it seems that DKAM won’t stop issuing them with the current direction of their stock. The latest press release from yesterday informed us that their Mexican Day of the Dead Craft Beer is now available in all Whole Foods Markets in Arizona, which is good, but not as exciting as it can get.
With all these press releases we can’t decide if yesterday’s gains can be attributed to this announcement alone, but the ticker made a decent 20% jump in price and closed at $0.0195. The numbers of traded shares was also increased and the 16.7 million that switched hands generated some $326 thousand in dollar volume.
What bothers us the most is probably the fact that the company hasn’t filed a financial report in quite a while. The last one that is available is for the period ended January 31, 2013 and isn’t quite optimistic.
- cash: $22 thousand
- total current assets: $159 thousand
- total assets: $159 thousand
- total and current liabilities: $16.5 million
- revenues: $1.2 million
- net loss: $2 million
Comparing the liabilities to the assets and revenues that DKAM is generating gives us the chills. What’s even worse is the fact that their net loss for the quarterly period in question is more than 993% higher than the one for the same period in 2012, while the revenues have remained almost identical.
All in all, it seems that DKAM isn’t developing pretty good and insted of slowly becoming profitable it is doing the exact opposite. This is the exact reason for which we would advise you to do a lot of due diligence and weigh out the risks before jumping in their boat.
Plandai Biotechnology, Inc. (OTCMKTS:PLPL) also did good yesterday and added 33% to its value. Easton Pharmaceuticals, Inc. (OTCMKTS:EAPH) on the other hand, didn’t fare so well and dropped 20% in price.
